2015-11-10 Planning & Organisation Committee Agenda

PLANNING & ORGANISATION COMMITTEE MEETING AGENDA                                    10 NOVEMBER 2015


Financial Services
12                       BUDGET REVIEW - SEPTEMBER QUARTER 2015/16
DOCUMENT INFORM AT ION




Author                           Manager Financial Services, Wayne Jensen
                                 Corporate Services Department

Index                            ECM/ Subject/ 7.09 – 2015/2016 Budget

Attachments                      1.   Proposed Budget Adjustments – operating and capital
                                 2.   Revised Budget Financial Statements


EXECUTIVE SUMMARY
The Local Government Act 2009 and Local Government Regulation 2012 require Council to
undertake regular reviews of the adopted budget to ensure it remains reflective of planned
activities to be funded through the budget period. Consequently, a full review of all activities has
been undertaken using income and expenditure figures as at the end of September.

RECOMMENDATION
That Council note the report by the Manager Financial Services to the Planning & Organisation
Committee Meeting dated 10 November 2015 and approve the requested changes to the budget
for the 2015/16 financial year, as outlined in the attached Budget Financial Statements.


REPORT
Section 170(3) of the Local Government Regulation 2012 allows Council, by resolution, to amend
the budget at any time before the end of the financial year. As such, formal reviews have been
scheduled to be undertaken following the close of each quarter (July to September; October to
December; January to March), using year-to-date figures as the basis for any revised forecasts.

This review also provides an opportunity to take account of any additional information that has
come to light since the adoption of the original budget to ensure the most accurate figures are
included.

The Revised Budget Financial Statements clearly identify statement line items that have been
affected by the proposed adjustments.

Key considerations for any budget adjustments include:
 All increases in operating expenditure should be funded. If variances cannot be funded at the
   branch or departmental level, then operational savings, determined after collaboration with
   other departments, should be identified to ensure no degradation in the overall operating
   position for Council.
 Proposed reallocation of savings or additional revenue will be confirmed by the Leadership
   Team based on business risk assessment.
 The business capacity to deliver the adopted works program should be considered as part of
   the evaluation process for all projects.




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